Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: US retail sales disappoint, oil up

While you were sleeping: US retail sales disappoint, oil up

June 13 (BusinessDesk) – Wall Street declined as US retail sales grew less than expected while oil prices jumped amid concern that escalating violence in Iraq might threaten to destabilise the country and disrupt oil supplies.

Retail sales rose 0.3 percent in May, well below expectations for a 0.6 percent advance. To be sure, sales for April were upwardly revised to a 0.5 percent increase.

“We’re not getting the big acceleration that many people hoped for,” Michelle Girard, chief US economist at RBS Securities in Stamford, Connecticut, told Bloomberg News.

Separately, initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 317,000 for the week ended June 7.

In the final hour of trading in New York, the Dow Jones Industrial Average fell 0.67 percent, the Standard & Poor’s 500 Index shed 0.72 percent, while the Nasdaq Composite Index declined 0.86 percent.

Earlier this week, the World Bank lowered its forecast for US economic growth this year to 2.1 percent this year, from a previous 2.8 percent.

Slides in shares of Home Depot, down 2 percent, and those of Caterpillar, down 1.9 percent, led the Dow lower.

Shares of Lululemon plunged, last 15.3 percent weaker, after the company downgraded its profit and revenue outlook for the year.

"2014 is very much a transitional year for Lululemon, and we are on track with the improvements we have set out to achieve,” Laurent Potdevin, Lululemon's CEO, said in a statement. “We are focused on building a scalable foundation to further elevate our North American business and pursue the brand's incredible international potential.”

Analysts were not so sure.

"The second quarter guidance is for a real deceleration from the already anaemic first quarter," Cowen and Co analyst Faye Landes told Reuters

In Europe, the Stoxx 600 Index inched higher to end the session at 347.83. Germany’s DAX fell 0.1 percent, while France’s CAC 40 dipped 0.02 percent. The UK’s FTSE 100 rose 0.06 percent.

The price of oil jumped amid concern about a return to civil war in Iraq and a disruption of supplies from OPEC’s No. 2 oil producer. Islamist rebels have overrun several key cities in the north of Iraq and are threatening to take their fight to Baghdad.

“Iraq had been a bright spot ramping up production and now we’re in the midst of a very ugly conflict,” John Kilduff, a partner at Again Capital, a New York-based hedge fund that focuses on energy, told Bloomberg News. “Most of the production is in the south but if the rebel advance continues this could be threatened.”

West Texas Intermediate jumped as much as 2 percent while Brent gained 2.2 percent. The Thomson Reuters/Jefferies CRB index climbed 1.1 percent, the most in two months.

“Oil spiking isn't a problem right now, since this is strictly a geopolitical response, but if it stays substantially above US$115 for a week or two, that's when it will become an issue for consumer spending or the economy at large," Paul Schatz, chief investment officer at Heritage Capital in Woodbridge, Connecticut, told Reuters.

The months of June through August are key driving ones in the US as they coincide with school holidays.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news